First green bond framework fully aligned with EU taxonomy

17/06/2021

In March of 2021, E.ON, the international leading provider of energy networks and solutions for a decentralized, digital and sustainable energy world, became the first Corporate across Europe to present a Green Bond Framework which is in full compliance with the criteria of EU Taxonomy on sustainable economic activities. Societe Generale helped structure both, E.ON’s Green Bond Framework and its subsequently issued first Green Bond aligned with the principles.

Given the rapid growth of sustainable and positive impact finance, sometimes it can be difficult to define which economic activities are truly environmentally sustainable. EU Taxonomy is a classification system that wants to address this issue. It aims to create security for investors, protect private investors and help companies to plan the transition. In short, it sets a Europe-wide standard for sustainable investments.

It was thus a significant landmark when energy supplier E.ON presented its new Green Bond Framework in March of this year and announced that it was the first across Europe to comply with the criteria of the EU Taxonomy on sustainable economic activities. This was followed by an issue of a EUR 750 million green bond. 

Proceeds from the bond will be used to finance or refinance sustainable projects with a clear focus on energy transition, including electricity networks, renewable energy, energy efficiency and clean transportation, together forming the “Eligible Green Portfolio”. The selected projects contribute to UN Sustainable Development Goals 7, 9 and 111 and focus on decarbonizing European societies.

Societe Generale was Joint Structuring Agent for E.ON’s new Green Bond Framework and Joint Structuring Advisor and Joint Bookrunner for the subsequent green bond issue.

The bank had also structured the previous E.ON Green Bond Framework and the Innogy Green Bond Framework. The work for the client once again highlights Societe Generale’s advisory capabilities and the deep sectoral and technical understanding of its teams.
 

 


1-  For a full list of UN Sustainable Development Goals, go to: https://sdgs.un.org//goals

“ Over the past years, E.ON has established green financing as a core element in our funding strategy. With our updated Green Bond Framework, we create a EU taxonomy aligned platform to use green bonds as an integral part of our financing mix going forward. We expect to cover more than 50 percent of our annual funding requirements with green bonds going forward and we very much appreciated to work with Societe Generale’s ESG team which has a proven track record in the field. ”

Henryk Wuppermann,
Head of Corporate & Structured Finance, E.ON

“ After structuring E.ON’s new Green Bond Framework, we are proud to support the client with the issue of its first Green Bond aligned with EU Taxonomy. The transaction once again underlines Societe Generale’s innovative approach that combines ESG with financial expertise and delivers comprehensive, thorough and customizable solutions. ”

Ralph Neher,
Senior Banker, Societe Generale